Six years removed from the Great Recession, LMC Automotive senior vice president and economist Jeff Schuster believes North American auto sales will remain strong through 2020 despite the remaining effects of the recession.
Automotive News reports Schuster, speaking at the 2014 Management Briefing Seminars in Traverse City, Mich., added that slow or declining growth in global markets — such as those of the BRIC contingent — will mean such growth will be "at a more muted rate" than the overall North American market, thanks in part to leaner manufacturing between automakers and suppliers.
He goes on to say that fleet sales are down from 22 percent to "a more healthy" 18 percent, with factory utilization up to 90 percent, both part of the push toward 17 million SAAR at the end of 2014. Schuster believes the SAAR will continue to improve until 2020, falling somewhere between 16.7 million and 18.3 million units sold that year.
Finally, Schuster says the external factors in where the SAAR will go include older consumers delaying retirement and younger consumers "delaying full entry to adulthood by continuing to live at home and postponing marriage." Profits may also lag behind sales, and incentives should be watched, he explained.
The post Schuster: North American SAAR To Remain Strong Through 2020 appeared first on The Truth About Cars.
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